Bank of England Fines Vocalink for Inadequate Risk Management

The Bank of England has imposed an £11.9 million fine on Vocalink Ltd for inadequate risk management and governance frameworks. The firm, owned by Mastercard, processes a major portion of UK payments, including 90% of salaries and 98% of state benefits.

This fine marks the first time the Bank of England has penalized a financial market infrastructure firm. Originally set at £20 million, the penalty was reduced after Vocalink admitted the shortcomings and agreed to rectify them. Despite being directed to fix system issues by February 2022, the company failed to fully comply.

Vocalink initiated a remediation program following BoE directives and claims that the issues identified had no impact on services. The firm, regulated as a specified service provider since 2018, has since made significant improvements, according to a company spokesperson.

(With inputs from agencies.)